Some leading organisations use digital
contract and document storage tools for efficiency and productivity. But
many still rely on insufficient, manual practices – for example, using filing
cabinets for paper documentation and emails. And even if digital storage is
used, if it’s disorganised the tangible benefits are lost. Manual storage makes
it almost impossible to keep contracts secure, maintain version control, adhere
to key dates, stay on top of milestones and enforce contract archiving and
retention rules.

Storing
contracts may seem like a simple task, but without a
secure contract repository organisations are missing out on the one thing that might
support their ability to reduce risk, take control of their contracts and improve
performance.

The solution: a contract repository system

A central contract repository is the ideal
solution for storing contracts while continuing to get the most out of them.
A cloud-based document repository also enables contract management professionals to organise contracts,
oversee permissions, employ document version control, search for existing
contracts, track contract status, collaborate and more.

Contract storage isn’t merely about the
location where documents are stored – it’s an opportunity for organisations to make contracts work for them, leading to more productivity, increased revenue and savings, reduced
risk and success in meeting contract
management KPIs.

Throughout the contract lifecycle, an abundance of confidential information is
tracked and stored within contract management software system. With
personally identifiable information (PII) and other sensitive data, contract
managers should be able restrict access to specific pieces of data. For
instance, software end users may have no need to engage with contracts other
than those they’ve drafted themselves. So, with a clearly-defined
permissions standard in place, organisations can prevent security issues and
instances of sensitive data entering the hands of unauthorised personnel.

Additionally, the manual storage of contracts
hinders success by:

limiting access

leaving documents and their supporting files disconnected

lacking visibility and transparency

offering no support of proactive tracking and management of contract
approvals, status, renewal dates, automated renewal clauses, and milestones.

Conversely, an online document repository
helps by:

optimising and making safe the location, protection, organisation, search
and sharing of contracts

Manual contract workflow management is an
outdated practice that requires contract managers to personally oversee every stage
of the contract lifecycle. Any delay on the part of involved personnel can
seriously hamper the contract lifecycle flow.

Contract collaboration, negotiation and
approvals can be managed with workflows to track every stage of the contract
lifecycle. Automated alerts help contract management personnel meet key
dates and milestones, including contract renewals. Additionally, audit trail history
recorded by intelligent contract management software provides an accessible,
up-to-date record of contract changes.

#3 Streamlined document assembly

The problem with manual document drafting

Productivity suffers when multiple people
are tasked with creating, reviewing and revising contract documents. Time
is wasted creating new documents, repeatedly downloading templates, locating
relevant information and manually imputing data into a myriad of fields.
Additionally, static, untouched documents become obsolete when up-to-date
document versions and templates are not apparent to all involved personnel,
increasing the risk of error. Compliance can become a problem when
templates, approved language practices and clauses are not current or standardised.

The solution: automated document assembly

It’s easy to stop wasting time and money
with a manual document drafting and assembly process. Intelligent software
that automates and centralises contracts, agreements and risk documents enables
contract managers and legal professionals to enforce compliance, and make any
issues re data entry errors, collaboration, storage and distribution a thing of
the past.

Contract management software enables the quick creation of compliant, timely and accurate documents,
contracts and letters that merge approved clauses and data fields. An
intuitive interface allows for the management of multiple templates and
document versions, which can easily be exported into standard file
formats. MS Word plug-ins make review and drafting more
time-efficient. Version tracking tools mean that all stakeholders
involved in the document drafting process are up-to-speed and on the same
page. Electronic signatures make signing easier, faster, and accessible
from anywhere in the office or on the go.

Document assembly software allows for the
configuration of complex rules and user permissions regarding document
management and version access with the help of audit trail and approval routing
capabilities, boosting compliance.

#4 Intelligent contract tracking

The problem with manual contract tracking

Manual contract management processes may be
acceptable for organisations managing low numbers of contracts. However,
when contract volume increases to hundreds, thousands or more, contract failure
rates exponentially increase. Manual filing systems, emails, and spreadsheets
are not adequate tools to get the most from contracts because:

manual filing systems lead to different versions of contracts being
stored in disparate folders, significantly increasing the risk for lost
contracts and versions

Additionally, to better track the entirety
of the contract lifecycle from requests to approvals, look for functionality
including:

intelligent workflow

user-defined fields

automated key date and task reminders

electronic signatures.

#A bonus tool – eSignatures

The problem with manual signatures

Obtaining signatures manually and/or in
person can be extremely difficult, especially when employees with signing
authority are unavailable. Signing is arguably the most important aspect
of contract management, but manual signing processes are antiquated and slow,
standing in the way of a streamlined experience for internal and external
parties. The direct and indirect costs resulting from paper-based
processes, administrative time wasted, and mailing fees can become
excessive.

Electronic signatures are essential for
successful contract management in 2020. An eSignature is an electronic
rendering of a signature that enables stakeholders to sign a document online
without needing a physical copy of the document on hand. Signatures are a
crucial step in the contract lifecycle. Signature bottlenecks can trigger
delays with meeting obligations, meeting compliance standards, and
executions. Electronic signatures can cut send-to-sign time up to 20%.

Contract managers can fully reap the
benefits of eSignatures with electronic signature software. Companies that are wasting time
managing paperwork can benefit significantly from electronic signatures because
they can:

save money: no more paper, printers, ink, travel, or mailing costs are needed
to get documents signed

save time: significantly less time will be spent focusing on administrative costs
involved with sending, tracking, storing, and following up on documents that
are out for signature

provide enhanced security: confidentiality breaches and processing errors will be reduced
because electronic signatures provide audit trails and are legally binding and
secure

improve business relationships
and visibility: the signing process is streamlined and made accessible
in or out of the office, which makes it easier to meet crucial deadlines.

The contract management tools of the future
are here, now

The tools mentioned above can streamline how
you manage contracts. With unlimited and secure file storage, intelligent
workflow, contract lifecycle automation, enhanced tracking and search tools,
and easy-to-use eSignatures, our leading contract management software has
everything you need to navigate the coming year in one platform.

Contract Insight® has pioneered contract
lifecycle management since its inception. This intelligent contract
lifecycle management software is relied upon by thousands of contract, risk,
sales and legal professionals worldwide, and it benefits thousands of users in
large and small organisations throughout the public and private sector.
Its plethora of features empowers businesses like yours to:

manage
contracts more efficiently

mitigate
risk

oversee
compliance

draft
documents quickly

track
costs

receive
alerts

sign documents
with E-signatures

reduce
contract management costs and lost productivity due to outdated contract
administration procedures.

If you’d like a demo of Contract Insight or simply to find
out more about what we do, please call John O’Brien at Four Business
Solutions on 0800 6250 025.

John O’Brien is the CEO at Four Business Solutions, global
business consultants and software integrators providing business processes
improvements in Finance, Supply Chain and Operations, across a broad range of
industries.